For families caring for loved ones with disabilities, saving for the future can feel like a challenge. But here in Michigan, there's a program specifically designed to help: the MIable account. These savings opportunities are relatively new, and many families who could benefit from the program are unfamiliar with this option. Let's explore the requirements and benefits of this valuable savings tool.

Who is Eligible?

The MIable account is open to individuals with disabilities who meet one key requirement: their disability must have manifested before the age of 26. It's important to remember that MIable accounts aren’t just for children. There's no upper age limit to open an account, as long as the disability onset began before age 26.

What are the Benefits?

MIable offers a variety of advantages:

Tax-Free Growth

Earnings on your contributions grow tax-free, allowing your savings to stretch further.

Tax-Free Withdrawals

When used for qualified disability expenses (QDEs), withdrawals are completely tax-free. QDEs cover a wide range of costs associated with disability, including:

• Education
• Housing
• Transportation
• Employment support
• Assistive technology
• Basic living expenses
• And more!

State Tax Deduction

Michigan residents can deduct contributions to their MIable account on their state income tax return, offering additional tax savings. (Be sure to check the current deduction limits as they may change year-to-year.)

Improved Financial Security

MIable allows you to save for the future without jeopardizing eligibility for SSI or Medicaid benefits.

What are the Contribution Limits?

There are two contribution limits to be aware of:

Annual Gift Tax Exclusion

The total amount you can contribute from all sources in a year cannot exceed the annual gift tax exclusion set by the IRS. In 2025, this amount is $19,000.

Income-Based Limit

If the beneficiary with a disability has earned income, they can contribute an additional amount equal to their annual earnings, up to a maximum limit (which is also adjusted annually).

Getting Started with MIable

If you think a MIable account might be a good fit for you or your loved one, check out the MIable program website at https://savewithable.com/mi/home.html. They offer a wealth of information and resources to help you get started. You can also call their customer service line at (844) 656-7225 to speak with a representative.

Remember, planning for the future is essential. The MIable account empowers families with a tax-advantaged way to save and create a brighter future for their loved ones with disabilities.